The Malta Financial Services Authority (“MFSA” or “Authority”) cancelled, on regulatory grounds, the Category 2 Investment Services Licence of Malta Capital Management Ltd.
Address:
Level 3,
6 Market Street,
Floriana FRN 1082
Business Activity: De Minimis Alternative Investment Fund Manager
BREACHES
In addition to the Manager’s failure to satisfactorily address a number of breaches, which needed to be rectified following the suspension of its licence on 12 December 2017, the Manager did not seek to take any corrective actions or initiatives to restore its business operations and was found to be in breach of the following Standard Licence Conditions (“SLC”) of Part BIII of the Investment Services Rules for Investment Services Providers (“the Rules”):
[i] SLC 8(a) of the Rules – Failure to notify the MFSA in writing and at least one month in advance of a change in its business name;
[ii] SLC 22 of the Rules – Failure to have a Compliance Officer in place;
[iii] SLC 29 of the Rules – Failure to act honestly, fairly and professionally in accordance with the best interests of its clients;
[iv] SLC 35 of the Rules – Failure to maintain sufficient financial resources;
[v] SLC 38 of the Rules – Failure to have in place an Auditor; and
[vi] SLC 40 of the Rules – Failure to submit the Audited Financial Statements from 31 December 2015 to 31 December 2019.
REGULATORY ACTION
On 11 June 2020, the Malta Financial Services Authority cancelled, on regulatory grounds, the Category 2 Investment Services Licence of Malta Capital Management Ltd..
The Authority has taken this decision in terms of the powers under Article 7(2)(b) and (d) of the Investment Services Act.
PUBLICATION
This notice is being published as part of the Authority’s standard enforcement policy and in terms of Article 25(1) of the Investment Services Act and Article 16(8) of the Malta Financial Services Authority Act.
UPDATE ON 14 JULY 2020
The Authority’s decision was not appealed before the Financial Services Tribunal within the period established by law.
